I did grab a few eurocents on just a few contracts in the schatz yesterday It's not what I usually do, but I'm a big Eurex-fan actually.
hrokling Good to hear from you. I agree eurex is a pretty good exchange. The main reason I like them is that they have a 10 deep orderbook unlike cme group which is only 5 deep. Not to mention they have some of the lowest trading fees there is. I honestly don't think I would be able to trade the schatz like I do if the orderbook wasn't 10 deep. Any thoughts on my H/M eurodollar spread? Anyway that spread closed at -43. Im short it at -44. Im thinking about taking profit around -48 if I can get it done (tried to yesterday but no luck). With eurodollar which has a pro rata algorithm with big size on both the bid and the ask I would think that the smaller traders out there like me would actually want to send their orders to the pit to be worked under open outcry. I say this because if I don't have enough contracts to be placed nicely underneath the pro rata system I could just send the orders to the pit and they could work it there (there is no pro rata or fifo in the pits!). I would think this would be a great way for the smaller man to compete with the larger guys when trading the eurodollar. Maybe people are already doing this but I just happen to think of it right now and it doesn't sound like a bad idea. Something to think about. March eurodollar closed at 97.11 I believe only down about .01. Im planning on adding more shorts with a break below 97 or so like we talked about. I also sold 2 april 114/118 strangles in the 10yr note for 111. My short 118 call and 114/118 strangle I put on before have just about expired worthless and I believe there is only about 7 days until expiration. So that will be good. Have a great weekend everybody!
Well plan for tomorrow is the following. Look to add shorts to my eurodollar trade. Look to just get the hell out of my H/M spread (im losing patience) Maybe sell some more apr strangles in the 10yr Also look to short apr gold this week Look to short march nasdaq this week also Lots of stuff going on so it should make for an interesting week. Talk to you guys later
Well got a nice short off on the schatz this morning! (doesn't really have anything to do with my position trading but im happy about it lol) Eurodollar traded a little lower today and I expect that to continue. My profit target for this trade is around 96.60 or somewhere around there. Gold up about $2 today I think. Market is still chopping around and looking for direction. Im interested in shorting it if we can trade below 900 with any conviction. Looking to short the es tonight at 1368 (today's close I believe). Market up huge on very little volume and settles at a key area on the charts. Looks kinda fishy to me. I think this could be a great R/R trade and work out really well if I can get it done. There were no fundamentals behind this move, it was all stop running by some larger players imo. I think we are headed down to test the lows at least one more time and then get a really nice pop. I just don't think we have enough conviction in this market right now to start trading substantially higher. Wish me luck......I hope I can get filled tonight in es.
not trading crude anymore? btw how long have you been trading? are u experimenting in new contracts or have traded them before?
usman88 No im not trading crude currently but that can change overnight. I will and do trade just about anything that catches my fancy. It takes way more time and effort to constantly keep up to date on each and every market out there but its worth it imo. As far as crude goes I think its going higher......maybe to retest the old highs!!! I am interested in buying up some crude on a pullback. I have been investing in the markets since I was 11 years old and started trading commodities as soon as I turned 16 (im 17 now). Shorted 5 es at 1365.....I didn't want to wait to see if we could trade up to 1368 so I just shorted em at 65. I think this will prove to be a great play!
which eurodollar are we talking about? my software shows 3 month eurdollar march 08 having nominal value of around $250,000 but a trading calender I have shows nominal values of $1,000,000 and $500,000(full and mini) can u tell me the contract code?
Yeah no problem Im not a genius in trading these things but the 3 month eurodollar is the one im talking about. I don't know about the values that much but the one im trading is $25 per full tick. Just checking my quotes now and the code for my eurodollar is GEH08.
thts the same one i was looking at tick = $0.005 rite? I am guessing that you trade these contracts based on technicals rather than fundamentals?
Yeah that is the right one. I trade most of the financials off of technicals but rarely will I not take into consideration the fundamentals. Like for instance with the eurodollar. I think treasuries have already priced in worst case senario for the economy. While I currently think we are in a recession I don't think treasuries can move much higher. Yields are extremely low, debt auctions have seen huge supply with little demand for the debt, etc.